GLOBAL MARKETS: The initial risk off reaction to Republican Donald Trump’s presidential election victory has significantly tempered mostly due to the conciliatory tone the US President-elect adopted in his victory speech. Risk sentiment improved and major government bonds came under pressure reflecting the prevailing market view over the likelihood of higher inflation pressures assuming that the new US government’s election proposal for a large fiscal stimulus will be enacted.

GREECE: In an interview, the Governor of the Bank of Greece (BoG) Yannis Stournaras appeared confident that the Greek government will swiftly conclude the 2nd programme review, which will allow the implementation of the short-term debt relief measures, the specification of the medium-term debt relief measures and the inclusion into the ECBs QE programme and added that the BoG is already preparing another package of measures for the further relaxation of capital controls as liquidity conditions have improved. IMF spokesman Gerry Rice stated that it is important for the IMF to assess medium-term debt relief measures and their impact on the Greek debt now whilst they do not have to be implemented in advance. CPI inflation in October 2016 eased slightly to -0.5% against -0.9% in October 2015 and -1.0% in September 2016.

SOUTH EASTERN EUROPE

BULGARIA: The IMF annual article IV report on Bulgaria upgraded the growth projection of 2016 to 3.3% in 2016 and 2.9% in 2017.